Every homeowner wants their home to be clean, comfortable and safe for them and their families. The problem is that you might experience some bumps along the way, with homeowners being recommended to spend at least 1% of their house value on maintenance every year. Though home warranties can help slash this cost, it’s always best to have the lowdown before you commit.

What is a home warranty?

Before you jump into your decision, it’s best to know what a home warranty is. Not many homeowners know this, as it’s easy to confuse a home warranty with home insurance.

With home insurance, you’re likely to be covered for anything in your home that is damaged or stolen through no fault of your own. For example, if your electrics have been rendered dangerous after a flood.

Yet, home warranties cover any sort of wear and tear in the home, and can sometimes replace any items which are damaged or faulty. When you realize something needs repairing, you can call up your home warranty provider and submit a claim. Different providers offer varying degrees of cover, but warranties are designed to save you thousands of dollars on repair work throughout your time at home.

PRO- Save Money

It is no secret that home repairs can eat into your daily budget. In extreme cases, repair costs can lead homeowners into debt. What a home warranty aims to do is avoid this issue altogether. Aside from affordable call-out fees, you’ll pay a yearly coverage as little as $350, depending on your home.

You’re right- this seems like a lot, but with repair costs often costing thousands of dollars per problem, your warranty pays for itself after only one issue arises. In some cases, your home warranty might be free for the first year or two that you live in your home. This means you won’t need to pay for any general wear and tear, cutting the costs usually incurred with moving into a new home.

CON- You Might Not Need One

The thing which always puts people off investing in a home warranty is that they might not need one. For those living in brand new homes with sturdy appliances and furnishings, the chances are you’re unlikely to encounter wear and tear this early on in your home’s life. This can mean you’re throwing away a few hundred dollars a year on something you’ve never needed to rely on.

If you’re also a whizz at DIY, or get discounted repair services from someone you know, you might want to hold back on having a home warranty until you know you need one. The only issue is if an unexpected, expensive repair needs to be carried out, as you won’t be covered, and you could lose money.

PRO- Less Stress

After the housing crisis, it’s no wonder so many Americans are feeling more and more stressed about their homes. In fact, extensive studies have shown how housing stresses can make any family member mentally and physically sick. This is mostly due to how expensive it is to maintain a home, which is something a home warranty can help with.

If you’re living somewhere which often falls into disrepair, you’ll be shelling out thousands of dollars to fix things. This is bound to trigger any mental health problems, but it is easily solved when you’re paying an affordable, flat fee for a home warranty. The fact that call-outs are easily and problems are fixed quickly also helps to reduce stress on families.

CON- Not Everything Is Covered

Home warranties cover lots of basic repairs, such as a broken washing machine or wobbly steps. When it comes to more expensive repairs, many home warranties don’t cover these expenses. This means you’ll sometimes need to pay extra anyway to get something fixed. There is also the issue of some warranties not shelling out for the replacement of appliances which need to be replaced, which can result in extra costs. This isn’t the case for all warranties, however, a thorough search can solve this issue.

On the other hand, you could be getting too much coverage, meaning you’re paying too much for your yearly set rate. Avoid this issue by chatting to your chosen provider about what you do and don’t need, and work out a plan to suit you.

PRO- Personalized Protection

There is something undeniably reassuring about having your repair costs covered, but the best thing about home warranties is that they often offer personalized protection. This can cut costs further, but it also means that your provider has in-depth knowledge about the repairs you usually need to have carried out.

This works because each home is different. For example, one home might need their outdoor pool repairing when others don’t. With some policies, you can choose which parts of your home need covering, and which don’t, allowing you complete control over your repairs.

In this modern world, various providers are also on call 24/7 to answer any issues. If you have a repair that needs attending to in the middle of the night, you can have it sorted by the time the sun comes up.